TaxTMI 
TaxTMI 
TaxTMI 
2023 (10) TMI 335
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....owing the appeal filed by the Revenue, set aside the order in ITA No.149/02-03, dated 18.07.2002 passed by the Commissioner of IT (Appeals), Guntur [for short "CIT(A)"] and held that in terms of Section 220(2) of the IT Act, the interest on unpaid tax is chargeable against the assessee from the original Assessment Order dated 25.03.1991 of the AO but not on the subsequent consequential order dated 28.03.1994 passed by him in the light of the order dated 23.01.1992 of Commissioner (Appeals). Aggrieved, the assessee filed M.P. No.2/vizag/2009 seeking rectification of the order in ITA No.679 on the contention that the original assessment order dated 25.03.1991 was no more in vogue in view of the order dated 23.01.1992 passed in appeal by the ....
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....a consequence the original demand notice dated 25.03.1991 survives and interest has to be payable from that date. On these observations MP No.2/2009 was dismissed. Aggrieved, the assessee filed the instant ITTA. 3. Following substantial questions of law came up for consideration: (i) Whether the Tribunal is correct in holding that the interest under Section 220(2) is chargeable from the date of the demand notice dated 25.03.1991 that was set aside and ignoring that no tax is payable as per the order of the commissioner of Income Tax (Appeals) ? (ii) Whether the tribunal is right in holding that despite the fresh demand notice dated 28.03.1994 issued after completion of the assessment as directed by the Commissioner, the liability for i....
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....peal No.6 before CIT (A) and vide order dated 23.01.1992 the said authority in respect of capital gain and adhoc compensation, held that it was necessary to set aside the assessment order and directed the AO to go into the facts and apply the correct law and assess the capital gains. 7. Subsequently, the DCIT passed the consequential assessment order dated 28.03.1994 and gave effect to the appellate order and determined the additional compensation at Rs.62,61,883/- and interest on additional compensation at Rs.9,51,341/-. He collected some amounts and as the demanded amount as per the original assessment order dated 25.03.1991 was not paid, the AO charged interest U/s 220(2) of the IT Act reckoning from the original date of demand i.e., 25....
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....shall apply, meaning thereby, interest has to be payable from the original demand notice. So far as the instant case is concerned, the tribunal observed that the assessee has not paid the tax as per the original assessment order dated 25.03.1991 till 11.10.1996 and there was default on his part and hence the provisions of validation Act applies in the instant case and consequently interest is chargeable from the date of original demand notice in terms of Section 220(2) of the IT Act. The tribunal accordingly allowed the appeal filed by the Revenue and set aside the order dated 18.07.2002 passed by CIT(A). 10. Thus we have divergent interpretations on the order dated 23.01.1992 passed by CIT(A). While the subsequent CIT(A), in his order in ....